The Society of Chemical Manufacturers and Affiliates (SOCMA) recently responded to an announcement by China that it plans to impose tariffs on billions of dollars in U.S. exports, including chemicals, in retaliation to the recently proposed U.S. tariffs on Chinese aluminum, steel and other products. Jennifer Abril, president and CEO, issued the following statement:

"The U.S. and Chinese tariffs that have been proposed in the last 24 hours could dramatically impact the specialty chemical industry. Many of the proposed targeted products will impact the business of specialty chemistry, from vital upstream building block chemicals to the dozens of downstream market segments.  

SOCMA member companies manufacture specialized chemistries used in many applications, from polyethylene used in oil and gas, epoxy resins used in coatings and adhesives, to sulfates/sulfonates in home and cleaning products. These tariffs will impact SOCMA members in two negative ways. First, the U.S. tariffs will increase the cost of chemical raw materials that specialty manufacturers use in the development of their products. And, on the back end, the Chinese tariff could dramatically increase the cost of U.S. goods exported to China.

“China's Ministry of Commerce has made it clear that China intends to retaliate with equal intensity and scale. Thus, SOCMA strongly urges the White House and U.S. Trade Representative (USTR) to work with the Chinese government to come to a non-tariff resolution before the proposed tariff schedules become operative."

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